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Non performing credit rate was 18.23 per cent at the end of 2014, up from 17.34 per cent at the end of September 2012, according to data issued by the National Bank of Romania (BNR) yesterday. The total net assets in the banking system were RON 365.9 bn at the end of the year and the number of lending institutions was 40, down from 41 reported at the end of September 2012. The ratio of loans given versus deposits attracted was 120.12 per cent and the credit risk rate was 29.91 per cent at the end of last year. The solvability indicator was 14.64 per cent.
Adrian Vasilescu, adviser to central bank Governor Mugur Isarescu, says Romania is entering a period of stagnation or even decrease of bad credit. ‘I believe we are now entering a type of stagnation if not decrease of bad credit,’ Vasilescu told Agerpres, ‘capital’ says.
‘The central bank is cautious. It has not missed anything, absolutely anything of any of these bad loans in respect of provisions. There have been very strict checks and every loan has been provisioned for. All loans are 100 per cent guaranteed. Unfortunately, this is all bouncing back to the banking system that has made no profit this year. We should care about banks’ profit because Romanian companies need funds. The loans should be given by banks,’ the BNR governor said on TV recently.
The National Bank also informs that direct investments by residents abroad amounted to EUR 1.099 bn on December 31, 2012. EUR 432 M of that were equity participation, according to statistics of Romania’s international investment position, bnro.ro informs. The investment in bond portfolio amounted to EUR 1.413 bn at the end of 2012 and the investment in stock portfolio was EUR 935 M. Residents’ long-term loans and credit had reached EUR 2.347 bn and short-term loans and credit were EUR 5.224 bn. Cash investment and deposits totalled EUR 4.217 bn.